Lennar Stock (LEN): Exchange Offer Wraps, CEO Transition Looms as Wall Street Braces for Q4 2025 Earnings

Published: November 30, 2025

Lennar Corporation (NYSE: LEN), one of the largest U.S. homebuilders, heads into the final month of 2025 with its stock trading around $131.30 as of Friday’s close on November 28. That leaves Lennar more than 20% below its recent 52‑week high of $170.48, reached just days earlier, with the stock recently closing about 23% under that peak. ^[1]

The share price performance comes as Lennar closes a complex exchange offer involving Millrose Properties, prepares for the retirement of Co‑CEO and President Jon Jaffe, and faces a slate of earnings expectations that imply sharply lower profit versus last year. ^[2]

At the same time, major institutional investors — including Prudential Financial and Warren Buffett’s Berkshire Hathaway — have been quietly adding to their Lennar positions, even as Wall Street’s official stance on the stock remains a cautious “Hold.” ^[3]

Lennar stock today: price, performance and valuation

Based on recent trading, Lennar’s Class A shares change hands at about $131 per share, giving the company a market capitalization in the low‑to‑mid $30 billion range. ^[4]

According to Barchart data published in late October, LEN stock has fallen roughly 26% over the past 52 weeks, significantly underperforming both the S&P 500 and the Consumer Discretionary Select Sector SPDR ETF, which have posted high‑teens percentage gains over the same period. ^[5]

MarketBeat’s snapshot of Lennar’s fundamentals shows a price‑to‑earnings multiple just under 13x, alongside a modest dividend yield and a beta above 1, underscoring that the homebuilder still trades like a cyclical, rate‑sensitive stock despite its size and balance sheet strength. ^[6]

Millrose exchange offer: Lennar simplifies its portfolio

The most immediate corporate development for Lennar shareholders is the completion of the Millrose Properties (NYSE: MRP) exchange offer, a move designed to shed a minority stake and streamline Lennar’s portfolio.

On November 26, 2025, Lennar announced the final results of its previously disclosed offer to exchange up to 33,298,764 shares of Millrose Class A stock — about 20% of Millrose’s outstanding shares — for shares of Lennar Class A common stock. ^[7]

Key details from the final tally:

Lennar accepted 8,049,594 shares of its Class A common stock.
In return, it distributed 33,298,754 Millrose Class A shares to participating investors.
The offer was oversubscribed: investors tendered 85,296,924 shares of Lennar, far more than Lennar was prepared to accept.
A proration factor of 8.604228% was applied to most tenders, with “odd‑lot” holders (fewer than 100 shares) exempt from proration and fully accepted. ^[8]

For Lennar, the transaction has several implications:

It reduces Lennar’s direct exposure to Millrose, sharpening the focus on its core homebuilding and financial services operations.
By effectively retiring over 8 million Lennar shares that were tendered into the offer, it shrinks the public float, adding to the impact of ongoing buybacks. ^[9]
It generated short‑term volatility in related securities: Millrose shares fell about 5.5% on October 10 when the exchange offer was in focus, highlighting how closely arbitrage and event‑driven investors were tracking the deal. ^[10]

The exchange offer capped a sequence of announcements through November — including extensions and confirmation of the expiration date — that kept the stock in the headlines and signaled Lennar’s willingness to actively manage its investment portfolio. ^[11]

Leadership shift: Co‑CEO Jon Jaffe to retire at year‑end

Governance is also in flux. On November 14, 2025, Lennar announced that Co‑Chief Executive Officer and President Jon Jaffe will retire effective December 31, 2025, ending a 42‑year career at the company. ^[12]

Under the announced plan:

Jaffe will step down from both his executive roles and his board seat at year‑end.
Stuart Miller, currently Executive Chairman and Co‑CEO, will remain Executive Chairman and become sole CEO, with no immediate replacement appointed to Jaffe’s position. ^[13]

Lennar’s statement highlights Jaffe’s role in:

Driving national expansion, particularly in California.
Integrating major acquisitions across cycles.
Steering the company through crises from Hurricane Andrew to the Great Recession. ^[14]

The leadership change comes not long after former Lennar CEO Rick Beckwitt — who retired in 2023 — resurfaced on the board of timber REIT Weyerhaeuser (NYSE: WY) on November 17, emphasizing how Lennar’s executive alumni continue to influence the broader housing and construction ecosystem. ^[15]

Earnings under pressure: Q2 and Q3 2025 recap

Third quarter 2025: incentives bite into margins

Lennar’s third‑quarter 2025 results, covering the period ended August 31, 2025, marked a clear turning point in investor sentiment.

According to the company’s September 18 release, net earnings attributable to Lennar were $591 million, or $2.29 per diluted share. Adjusted for mark‑to‑market gains on technology investments, core earnings were $516 million, or $2.00 per share, versus $3.90 in the prior‑year quarter on a comparable basis. ^[16]

Other key Q3 metrics:

Total revenues: about $8.8 billion.
Revenues from home sales: $8.2 billion, down 9% year‑on‑year, driven mainly by lower average selling prices. ^[17]
Deliveries: 21,584 homes, roughly flat versus 2024.
Average selling price: $383,000, down from $422,000 a year earlier.
Gross margin on home sales: 17.5%, versus 22.5% in the prior year. ^[18]

Management attributed the margin compression primarily to higher incentives and price cuts used to maintain volumes in a weaker housing market, partially offset by improved construction efficiencies and negotiated cost reductions. ^[19]

An Investopedia wrap‑up noted that Lennar’s adjusted earnings and revenue both missed analyst estimates, with shares dropping nearly 6% in early trading after the release, before recovering part of the loss by the close. ^[20]

Zacks, summarizing the broader homebuilding landscape, described Lennar’s Q3 as “dismal” relative to expectations, again citing affordability challenges and pressure from incentives as key headwinds. ^[21]

Second quarter 2025: top‑line resilience, bottom‑line squeeze

The second‑quarter 2025 results showed a similar pattern: resilient revenue but sharply weaker profitability.

A detailed breakdown from independent coverage of Lennar’s Q2 earnings reported: ^[22]

Revenue of about $8.38 billion, slightly above Wall Street forecasts but down roughly 4.4% from Q2 2024.
Net earnings attributable to Lennar of approximately $477 million, about half the prior‑year quarter, with EPS of $1.81 versus $3.45 a year earlier.
Profit margin compressing to the mid‑single digits, roughly 5–6%, compared with double‑digit margins the year before.

Taken together, Q2 and Q3 show a consistent story: Lennar has maintained volumes and revenue by cutting prices and expanding incentives, but that strategy has come at a substantial cost to margins and earnings per share. ^[23]

Guidance and expectations: what’s priced in for Q4 2025?

Lennar has already laid out a detailed roadmap for its fourth quarter of fiscal 2025, and outside analysts have layered their own forecasts on top of that.

From Lennar’s Q3 release, management guided for Q4 homebuilding activity as follows: ^[24]

New orders: 20,000–21,000 homes.
Deliveries: 22,000–23,000 homes.
Average selling price: $380,000–$390,000.
Gross margin on home sales: about 17.5%, roughly flat with Q3.

Financial services operating earnings are expected in the $130–135 million range, with SG&A as a percentage of home sales forecast between 7.8% and 8.0%. ^[25]

External estimates are even starker on the bottom line. A late‑October analysis from Barchart notes that consensus projections call for: ^[26]

Q4 2025 EPS of about $2.30, down 42.9% from $4.03 in the prior‑year quarter.
Full‑year 2025 EPS of roughly $8.25, a 40.5% drop from $13.86 in fiscal 2024.
A modest rebound in fiscal 2026 EPS to around $9.01, implying roughly 9% year‑on‑year growth from the depressed 2025 base.

The same report emphasizes that LEN stock is still down more than a quarter over the past year, and that analysts remain cautious: out of 19 analysts, four rate Lennar a “Strong Buy”, thirteen recommend “Hold”, and two assign a “Strong Sell” rating. ^[27]

Even so, with Lennar trading slightly above the mean price target of about $127.57, the Street‑high target of $161 still implies potential upside of more than 25% from recent levels — assuming the company can stabilize margins and housing demand doesn’t deteriorate further. ^[28]

Who owns Lennar now: Prudential, Berkshire and the institutions

Despite the turbulent earnings picture, institutional interest in Lennar remains strong.

A recent MarketBeat analysis of SEC filings shows that Prudential Financial increased its stake in Lennar by 11.9% during the second quarter, ending the period with 147,681 shares worth roughly $16.3 million, representing about 0.06% of the company. Institutional investors and hedge funds collectively own around 81% of Lennar’s outstanding shares, underscoring its status as a core holding in many large portfolios. ^[29]

Other asset managers have also nudged their positions higher, though typically by smaller increments. ^[30]

Meanwhile, Berkshire Hathaway’s latest 13F filing, summarized by Kiplinger, confirms Lennar’s place — albeit a modest one — in the Warren Buffett stock universe: ^[31]

Berkshire holds roughly 7,050,950 shares of Lennar Class A (LEN), valued at about $888.7 million as of September 30, 2025.
It also owns about 180,980 shares of Lennar Class B (LEN.B), valued around $21.7 million.
Together, Lennar and Lennar Class B represent roughly 0.34% of Berkshire’s U.S. equity portfolio, with Berkshire having made “incremental and essentially immaterial” additions to the position in Q3. ^[32]

For some investors, Berkshire’s presence — even as a small holder — is a signal that Lennar merits long‑term attention alongside other cyclical, asset‑heavy businesses in the Berkshire orbit.

Shareholder votes, buybacks and governance signals

Lennar’s April 9, 2025 Annual Meeting of Stockholders also provided a window into how shareholders view the company’s leadership and strategy.

According to an SEC‑filing summary reported by Investing.com: ^[33]

All director nominees, including Stuart Miller, Jon Jaffe and other board members, were re‑elected, with support ranging from roughly 377 to 470 million votes.
Shareholders approved executive compensation via an advisory vote and ratified Deloitte & Touche as the company’s independent auditor for the fiscal year ending November 30, 2025.
Three shareholder proposals failed to pass, including calls for an independent board chair, enhanced disclosure on greenhouse‑gas reduction strategies, and a report on LGBTQIA+ equity and inclusion initiatives.

The same report notes that Lennar has maintained a 48‑year streak of dividend payments, while also executing aggressive share repurchases, reinforcing management’s focus on shareholder returns even as earnings cyclically decline. ^[34]

Lennar’s own Q3 release disclosed that the company repurchased 4.1 million shares in the quarter alone for about $507 million, at an average price of roughly $122.97 per share. ^[35]

Sector backdrop: housing softness and peer pressure

Lennar’s challenges are occurring against a backdrop of industry‑wide demand and affordability stress.

Zacks’ recent coverage of peer D.R. Horton (NYSE: DHI) highlighted a similar pattern: Q4 fiscal 2025 earnings missed expectations, revenues fell year‑on‑year, and margins compressed as the builder leaned on incentives to offset weak consumer confidence and affordability concerns. ^[36]

Other large homebuilders such as PulteGroup and KB Home have reported declining margins and softer orders in 2025, again pointing to rising incentives and pricing pressure as core issues. ^[37]

Lennar executives, for their part, have emphasized the potential benefits of easing mortgage rates and recent Federal Reserve rate cuts. CEO Stuart Miller told investors after Q3 results that declining rates late in the quarter and the Fed’s recent cut “give us optimism as we head into the fourth quarter,” though he also stressed the need to “moderate volume and allow the market to catch up.” ^[38]

That combination — softer near‑term earnings but a potentially improving rate backdrop — is central to how investors are currently valuing Lennar stock.

Key takeaways for Lennar (LEN) shareholders and watchers

As of November 30, 2025, the Lennar story looks like this:

Stock under pressure but off the lows: LEN trades in the low‑$130s, well below its 52‑week high yet still implying a large‑cap valuation for one of America’s biggest homebuilders. ^[39]
Portfolio simplification: The Millrose exchange offer is complete, reducing non‑core exposure and retiring more than 8 million Lennar shares, adding to buyback‑driven float reduction. ^[40]
Leadership transition: Co‑CEO Jon Jaffe’s upcoming retirement will leave Stuart Miller as sole CEO and Executive Chairman, concentrating leadership at the top of the organization. ^[41]
Margins and earnings compressed: Q2 and Q3 2025 showed materially lower EPS and margins, driven by price cuts and incentives in response to weaker housing affordability. ^[42]
Cautious but not bearish Wall Street: Analyst consensus is a “Hold,” with full‑year EPS expected to fall around 40% versus last year, but with modest recovery projected for 2026 and some price targets still implying significant upside. ^[43]
Strong institutional base: Investors like Prudential Financial and Berkshire Hathaway maintain meaningful stakes, while Lennar continues to return capital through dividends and buybacks. ^[44]

For traders and longer‑term investors alike, Lennar has become a high‑beta bet on the U.S. housing cycle: a company with scale, a long dividend history and heavy institutional sponsorship, but one whose near‑term earnings are highly sensitive to mortgage rates, buyer sentiment and the cost of keeping homes affordable.

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